It's business as usual on the global liquidity front. While "domestic" liquidity barely moves (courtesy of the inverted yield curve), foreign central banks continue to accumulate Treasuries and agency securities. Our own Global Dollar Liquidity Index is growing at a 11.9% annual rate ― sharply down from the September 2004 "insane" +22.8% peak, but still above +10% for the 53th month in a row.